The UK appears on the verge of agreeing a sanitary and phytosanitary (SPS) agreement with the EU that would remove a huge Brexit barrier to trade for the agri-food industry.
Since the UK left the EU single market, UK exporters have had to supply a veterinary health certificate with all animal and plant products exported to the EU.
Similarly, Irish exporters have also to supply a health certificate for all goods entering the UK market.
The deal between the UK government and the EU is referred to as “the upcoming SPS agreement” in a recent UK Department for Environment, Food and Rural Affairs (Defra) press release.
It has been welcomed by the British Meat Processors Association, which represents meat factories in Britain, and discussed with food security minister Daniel Zeichner’s visit to Dunbia’s Cardington plant.
Dunbia CEO Niall Browne added his voice in support of the deal: “The new SPS agreement between the UK and EU is a very welcomed development and this should result in potential cost savings for our business and a smoother delivery to our EU customers which are important to balance the carcase sales.”
What it means
Removal of the need for veterinary certification and reduction in border checks is estimated by Defra to be worth £5.1bn (€5.9bn) annually.
This is a direct cost of Brexit and an SPS agreement would essentially reverse this part of Brexit.
It is made possible by the UK choosing to align completely with EU standards, which, in practical terms, makes no difference, as the UK hadn’t deviated from the EU standards that were in place prior to Brexit.
When this SPS agreement comes into effect, it will mean that the certification cost, which was calculated at £200 (€230) per individual consignment, will be removed.
This should enable many small exporters to recommence the export trade they were forced to cease because of prohibitive costs.
It will also enable trade in manufactured meat products to recommence and, for example, British sausages will again be available to buy in EU markets.
Outstanding issues
While the deal is referred to as upcoming, there is no indication of exactly when it will be finalised and come into effect. Until then, the costs of doing export business remain.
For farmers in Northern Ireland, the veterinary medicines issue remains outstanding. Currently, there is a derogation for UK-approved medicines be used, but this expires at the end of this year.
A derogation has been in place pending the negotiation of a more permanent solution and while an SPS agreement would go a long way in sorting most of the issues, farmers in the North will be waiting for confirmation that they can continue to have access to all animal medicines available in the rest of the UK.
The UK exit from the EU single market restored trade barriers that had been removed 30 years previously.
An SPS deal is a significant step in unwinding a part of Brexit that brought considerable cost, but no value to either the UK or EU.
It could be argued by purists that this is an example of the UK having its cake and eating it, something the EU previously said wouldn’t happen.
However, the practical realities created by current US trade, Russia’s invasion of Ukraine and a change of government in the UK means that both parties see the benefit of a pragmatic approach. This is likely to be the basis of the future UK-EU relationship.
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